If you ever had any doubt about whether or not to buy an Airbnb investment property in Atlanta, perhaps the fact that it is one of the most wish-listed destinations might cheer you up. Everybody wants to experience the history for which the city is known, meaning that lots of people usually travel to Atlanta for vacations.
But maybe you do not think that is enough reason to open your purse since the world is still recovering from the pandemic. Keep reading to find out whether Airbnb Atlanta 2021 is a sound investment decision.
Coronavirus and Airbnb Atlanta, GA: What does that look like?
Every business felt the impact of COVID-19, one way or another. Airbnb owners were not left out as they experienced declines in occupancy rates, especially in March 2020. During this same period, Atlanta’s short-term rental industry saw a 33.1% decline in occupancy rate. According to Curbed Atlanta, local Airbnb business owners lost multiple reservations due to the pandemic. High-performing rentals went from six to twenty bookings per day at the start of the pandemic to a halt once the spread intensified.
But things are looking good again for most businesses, including Airbnb Atlanta, Georgia rentals. And this is not just because of the arrival of vaccines, which is good news for many people after about a year of dealing with a major pandemic.
Here are some other reasons why you may want to consider investing in Atlanta Airbnb in specific and the Atlanta real estate market 2021 in general.
First, the big guys are moving in
Top corporations in the United States are looking at Atlanta these days. For instance, Microsoft will be creating about 1,500 jobs by investing $75 million in an Atlanta facility. Google also will be extending its office in Atlanta, which will take all of 19 floors.
On the other hand, Airbnb itself recently chose Atlanta for expansion and, in the process, will be creating hundreds of jobs in both technical and non-technical roles. When you add this to the already booming startup scene, you are looking at an ecosystem that will soon see an increase in the need for houses for rent in Atlanta on a short-term basis.
As an investor, this may be a positive factor to consider when deciding to use Atlanta apartments for rent. After all, these new businesses are expected to attract a lot of business travelers who will visit the city for work-related purposes.
Atlanta has a good track record of appreciating
When scouting investment properties, including Airbnb Atlanta 2021, one of the things you look out for is the real estate appreciation trend in the location. Whether it is traditional rental or Airbnb rental, the Atlanta housing market 2021 generally has a knack for appreciation.
According to Norada, real estate in Atlanta has experienced a 71% appreciation in the last ten years. They also put its annual appreciation rate at over 5%, making it a top ten location in that category.
Related: Invest in These 10 Cities for Real Estate Appreciation in 2021
This number is even expected to rise due to the economic shift (as evidenced in the first point) in the city.
This means that Atlanta vacation rentals will be making you money not only in the short term but also in the long run.
Tourism is a big deal in Atlanta
There is a better chance of getting high returns on Airbnb rentals when the location is a tourist attraction. Atlanta Airbnb sees action most of the time and is a top ten most visited city in the United States. For instance, it saw 51 million visitors in 2016 alone. Most Airbnb hosts leverage the different events happening at certain times of the year to set their rental prices and gain higher margins.
To put this in perspective, during the Super Bowl weekend at the beginning of 2019, an average Atlanta Airbnb host made $690 in rental income. In total, Atlanta vacation home rentals made a whopping $1.35 million in just a few days.
Related: Mashvisor Names the 10 Best Places for Buying a Vacation Home in 2021
The population is growing
According to the Atlanta Journal-Constitution, this is one of the top five fastest-growing cities in the U.S. And it is expected to grow by a further 2.9 million residents within the next 30 years. This makes the city an ideal choice for real estate investors. It even looks more promising when you consider that over 50% of households rent homes rather than own them.
So, if you realize that hosting an Airbnb in Atlanta, Geogia is not the right fit for you, you can smoothly switch your short-term Atlanta rentals into long-term investment properties and continue making money in real estate. Demand for Atlanta houses and Atlanta condos is expected to remain strong for both strategies.
Best neighborhoods for Airbnb Atlanta 2021 investments
Mashvisor’s Atlanta Airbnb Heatmap
At the moment, there are over 1,500 houses in Atlanta listed on the Airbnb platform. They are spread across several locations. But as you would expect, some of these areas provide a higher return on investment than the others.
You can easily find this information on Mashvisor’s analytics dashboard which includes properties like lofts and condos in Atlanta neighborhoods. For this article, we have gone a step further and provided you with the most profitable areas in Atlanta for Airbnb investment. This ranking is based on Mashvisor’s analysis of Airbnb data, which comes straight from Airbnb.com, and reflects the performance of actual rental comps.
Related: Where Can You Find Airbnb Occupancy Rate Data for Real Estate Investing?
Brookhaven
Not only is Brookhaven, Atlanta one of the safest places in the city, but it is also now one of the most profitable investment choices for Airbnb Atlanta owners. Based on Mashvisor’s data, it has the highest Airbnb cash on cash return, which currently stands at 2.49%.
- Median Property Price: $394,475
- Price per Square Foot: $206
- Average Days on Market: 82
- Airbnb Listings: 26
- Monthly Airbnb Rental Income: $2,925
- Average Airbnb Cash on Cash Return: 2.49%
- Average Airbnb Occupancy Rate: 36.3%
Ridgedale Park
Although it is a neighborhood with a smaller population, Ridgedale Park has more Airbnb listings than a place like Old Fourth Ward, as well as a higher average cash return. As a result, it may be a worthy investment choice for an Airbnb Atlanta 2021.
- Median Property Price: $595,803
- Price per Square Foot: $301
- Average Days on Market: 82
- Airbnb Listings: 68
- Monthly Airbnb Rental Income: $2,553
- Average Airbnb Cash on Cash Return: 1.16%
- Average Airbnb Occupancy Rate: 38.1%
Old Fourth Ward
This neighborhood is widely considered as the birthplace of Martin Luther King and, in many ways, still holds historical relevance for many travelers. But it is also fast becoming the go-to area for small businesses looking for properties in one of the most affordable real estate markets.
- Median Property Price: $424,481
- Price per Square Foot: $301
- Average Days on Market: 82
- Airbnb Listings: 17
- Monthly Airbnb Rental Income: $1,489
- Average Airbnb Cash on Cash Return: 0.63%
- Average Airbnb Occupancy Rate: 36.86%
Pine Hills
On our list of most profitable neighborhoods for an Airbnb Atlanta 2021 investment right now, Pine Hills boasts the highest number of listings. It is a fast-growing community that will most likely see an increase in that number as more investors continue to move in.
- Median Property Price: $477,100
- Price per Square Foot: $235
- Average Days on Market: 78
- Airbnb Listings: 69
- Monthly Airbnb Rental Income: $2,605
- Average Airbnb Cash on Cash Return: 0.57%
- Average Airbnb Occupancy Rate: 37.66%
There is no shortage of neighborhoods to choose from when looking for an Atlanta Airbnb to buy. To make the best investment decision, ensure to use the right real estate investment tools, like Mashvisor. Our platform will help you analyze the market better and pick the most optimal rental properties on sale.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.
Atlanta Airbnb Laws
When investing in Airbnb Georgia or anywhere else within the US housing market, it’s important to check out the local short-term rental legislation. And if you are wondering if Airbnb is legal in Atlanta or if Airbnb is a good investment considering all the regulations, the answer is a resounding yes.
As expected, there are rules guiding hosts in the city as we have previously summarized for Airbnb Atlanta. Moreover, there have been newer additions lately. The most important of them is the short-term rental ordinance that Atlanta’s city council has recently passed.
The regulation states that renters will have to get a permit from the city’s Department of Planning and Community Development before they can lease all or part of their apartments in Atlanta on short-term rental platforms like Airbnb. The cost of this is a non-refundable $150 application fee.
This is nothing out of the ordinary for long-term Airbnb owners and expected for some cities. Even Airbnb approves of this particular regulation, calling it “clear and equitable.” In a nutshell, none of this is a blocker if you have plans of buying an Airbnb property in any part of Atlanta.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
Ready to get your first Airbnb Atlanta 2021 Property?
It’s quite clear now that an Airbnb strategy for Atlanta is a good idea. Indeed this is one of the best cities for Airbnb investment in 2021.
But where do you get started? The ideal course of action will be to do a thorough analysis of Atlanta investment properties and choose the best one you believe is worth your cash inflow.
Mashvisor’s real estate heatmap and investment property calculator are tools that can help you find your first Atlanta Airbnb property based on your specific criteria like Airbnb cap rate, cash on cash return, occupancy rate, average Airbnb income, property price, and so on. The heatmap will help you find the best neighborhoods for buying a vacation home in the Atlanta real estate market 2021, based on your own requirements. Meanwhile, using predictive Airbnb analytics, the rental property calculator will help you analyze the listings in your selected area and ensure that they provide good cash on cash return.
You can get started with a free trial today.
